Time Warner posts higher profit

Media conglomerate Time Warner Inc. said Wednesday that its second-quarter profit grew 14 percent, thanks to higher revenue from its TV channel business, video games and movies such as "The Hangover Part II."

The owner of HBO, Warner Bros. and People magazine reported net income of $638 million, or 59 cents per share, in the April-June period, up from $562 million, or 49 cents per share, a year earlier.

Adjusted earnings were 60 cents per share in the latest quarter, above the 55 cents per share that analysts polled by FactSet had expected.

Time Warner said growth in video game sales was the main reason for revenue growth in its filmed entertainment business, Warner Bros. But home DVD sales of last summer's "Harry Potter" flick also helped this segment boost revenue by 13 percent to $2.8 billion.

"The Hangover Part II" comedy has grossed more than $563 million worldwide from its May 27 opening through July 31, the company said.

The company said "Harry Potter and the Deathly Hallows: Part 2" broke industry records on its opening weekend and grossed more than $1 billion worldwide from its July 13 release through July 31. Its results were not included in the second quarter, which ended June 30.

Time Warner's networks business, which includes HBO, CNN, the Cartoon Network and others, grew its revenue 9 percent to $3.5 billion. Higher subscription rates, advertising growth related to sports programming and higher sales of HBO programming such as "True Blood" all helped boost results in this segment.

Time Warner also said it now expects 2011 adjusted earnings per share to be up "at least" in the low teens. Last quarter, it forecast an increase "in the low teens." Analysts are expecting $2.76 per share, a nearly 15 percent jump from 2010.

"We had another successful quarter and remain on track to meet our financial goals for the year," said Chairman and CEO Jeff Bewkes in a statement. "Our continued investment in our content and brands is paying off."

But shares of New York-based Time Warner slipped 19 cents to $33.81 in premarket trading.